James S. Johnson, a director at Bridgewater Bancshares Inc . (NASDAQ:BWB), has sold 4,705 shares of the company's common stock. The transaction, dated November 21, involved shares sold at a price of $15 each, amounting to a total value of $70,575. Following this sale, Johnson holds 93,646 shares directly. Additionally, he has indirect holdings through trust accounts, including 59,250 shares in the James S. Johnson Trust and 76,750 shares in the Jolynn Johnson Trust. Furthermore, he holds 10,417 shares indirectly through his spouse's IRA.
In other recent news, Bridgewater Bancshares reported steady growth in its third-quarter earnings with $0.27 per share. The bank's net interest income growth remained consistent, and a significant increase in core deposits was noted. The upcoming acquisition of First Minnetonka City Bank, expected to close in the fourth quarter of 2024, is anticipated to enhance liquidity and reduce Bridgewater Bancshares' commercial real estate concentration.
Leadership changes were also announced, with Nick Place and Lisa Salazar stepping into the roles of Chief Banking Officer and Chief Operating Officer respectively. These recent developments, coupled with a focus on conservative credit practices, are expected to lead to modest margin expansion in the coming quarter.
Despite a reported decline in loan balances due to elevated loan payoffs, Bridgewater Bancshares maintains a robust loan pipeline and strong loan demand. The bank's fixed-rate loan portfolio is expected to benefit from future Federal Reserve rate cuts. The bank's commitment to maintaining a strong deposit base and conservative credit practices, as well as its anticipated acquisition, positions it for continued growth.
InvestingPro Insights
As James S. Johnson reduces his direct stake in Bridgewater Bancshares Inc. (NASDAQ:BWB), investors might be interested in the company's current financial position and market performance. According to InvestingPro data, BWB's market capitalization stands at $412.48 million, with a price-to-earnings ratio of 14.05, suggesting a relatively modest valuation compared to industry peers.
The company's stock has shown significant momentum, with InvestingPro reporting a 25.42% price total return over the past six months. This aligns with an InvestingPro Tip highlighting a "large price uptick over the last six months," which may have influenced Johnson's decision to sell some shares.
Despite the recent stock performance, another InvestingPro Tip indicates that BWB "suffers from weak gross profit margins." This could be a concern for potential investors, especially when considering the company's future profitability. However, it's worth noting that BWB has been profitable over the last twelve months, with a diluted earnings per share of $1.05 for the same period.
For those seeking a more comprehensive analysis, InvestingPro offers 6 additional tips on Bridgewater Bancshares, providing deeper insights into the company's financial health and market position.
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